NSE to incentivise companies for adopting corporate governance norms

The National Stock Exchange on Thursday said it is in the process of creating incentives for listed companies to voluntarily adopt corporate governance norms and they are expected to sign up in exchange for improved visibility, higher liquidity and better quality investors.

We are in the process of creating incentives for listed corporates to voluntarily adopt corporate governance norms, which will be defined by NSE, and those will be stricter than the existing regulations," NSE managing director and CEO Vikram Limaye said while addressing an NSE-IGIDR conference on corporate governance here this evening.

Companies are expected to sign up for these norms in exchange for improved visibility, higher liquidity and better quality investors, he said.

This initiative has been inspired by Novo Mercado in Brazil, which has been highly successful, he added.

WATCH ZEE BUSINESS VIDEO HERE

If introduced, it would be the first time in the country that corporate governance would be driven by incentives rather than mandate, Limaye claimed.

The nation's largest bourse has instituted a centre for excellence in corporate governance, which is an independent expert advisory body.